It's official now that the iOS 5.0.1 running on A4 processor is jailbreak-able. The official release was done. As posted by Pod2g earlier in the video demo, this is now official. Head over to iClarified for jailbreak instruction.
Unfortunately, this jailbreak is only possible for iOS devices which are running on the older A4 microprocessor. Which is iPhone 4, iPod Touch, iPhone 3GS and iPad 1.
As for iPhone 4S and iPad 2 (which is a A5 processor), we will just have to wait a little longer.
Source: iClarified
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